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Pokémon Go hit the game app world by storm and became an overnight sensation with millions using their smartphones to “capture” Pokémon scattered across the world. What can the massive success of this child’s game teach the ARM Industry?
The answer is sitting on your desk. The popularity of the Pokémon Go app highlights the importance and even dependency Americans have on their smartphones. Consumers don’t want to just connect with others through their phones. They don’t just want to surf the web. They want to interact with their phone and with others through their phone.
Preferred Method of Communication
Many ARM agencies are hesitant to capitalize on the massive popularity of smartphones, yet this is clearly the consumer’s preferred method of communication. Whether you are reaching them by phone, text, or email, the smartphone brings these communication channels to one central location for the consumer.
Getting the consumer to interact with their debt through the smartphone directly in front of them will lead to higher rates of success for these agencies. The current gaming craze should teach bill collectors just how important the consumer’s smartphone is. Progressive companies are creating collection strategies that match the consumer’s desire to interact through a smartphone.
Increasing Collection Rates
Today some companies are saving money and increasing collection rates by directing consumers to online payments sites, IVR trees, and other methods that do not include a live agent. Most consumers are interacting with these applications through smartphones with high rates of success.
For example, payments made on a consumer’s mobile phone make up approximately 20% of PDCflow’s online payments received, which is an increase of 18% from 2015.
Compliance Concerns in the ARM Industry
Compliance concerns are one of the biggest issues faced in the ARM industry and obtaining an eSignature to meet the Regulation E requirements can be tricky. Some companies get around this by allowing the consumer to receive a text or email with a link, which then directs them to sign a recurring payment agreement right on their smartphone.
Even with this advanced technology, only the leading companies have implemented this strategy to date. Many collection agencies and law firms are still mailing payment arrangement agreements to the consumer using the Postal Service with very limited success.
In today’s marketplace, successful collection companies use every tool necessary to secure money from the consumer (especially once on the phone with an agent or on your website). Waiting for a paper letter or an email to be delivered and returned leads to disconnects and lower collection numbers. It takes far too long in today’s fast-paced technological world.
Let’s not forget the fresh lessons of Pokémon Go. Increasingly, consumers live by and through their smartphones. And on those phones, they expect a seamless experience and a high quality user interface. Company interactions are no exception. When consumers deal with companies for any reason, they expect engagement. Sure, compliance will always be a concern, but ARM companies that haven’t grappled with ways to make these consumer engagements easier are going to see their recovery rates fall as technology progresses.
PDCflow’s cloud-based solution can push an electronic signature request and a payment form to the consumer via email or text. This allows a complete repayment transaction to occur within seconds on a consumer’s mobile phone.
This flexible workflow solution is designed to meet the ever-changing demands of regulation for the ARM industry.
For more information on the advantages of using text messaging and email in payment collection, download our Traditional Vs. Digital Communication comparison chart.